TradeStalker's
R.B.I. Trader's Update
3 / 9 / 2010
(Published Since 1996)
...............................................
Dateline: 6:26 pm eastern time, 3/9/2010
The gap down open reversed from 1034.00 on the ES and
immediately turned back up on Tuesday. The rally took the ES
back over the 1139.50-1140.00 area which caused a squeeze
back towards its old high in a steep trend up move. After
reaching 1145.25, another small dip followed. After the dip,
a bounce back to a lower high reversed, setting up a 1-2-3
top, and the ES cut through 1142 support in the process.
After that break, a small bounce stalled and reversed from
1141.75, and then the ES dropped to the 1136.25 level with
just over 30 minutes left in stock trading. Buying/short
covering brought the futures back towards the 1142
resistance and settled over fair value.
The rally was a surprise on Tuesday, as it looked like a
test of the Monday low areas would bring in selling. Still,
the market has not been able to hold its gains and it also
has refused to break down so far. So, it looks like we will
get more two-sided action as long as the Tuesday afternoon
lows are defended. If they are broken, then any rally back
towards the Tuesday closes should be reversed then if the
market is weak. If the market somehow is able to put
together a good rally that takes the SP500 above the January
high of 1150.45, then there is a long-shot chance of seeing
the 1154 area on the SP500 cash, which would be a key hurdle
for this leg higher.
So, look for early strength to be sold on Wednesday. If we
get that, then an early drop towards the initial support
areas must be reversed. If it is not, then a roll over could
be underway. However, if a reversal back up from that
support plays out, the market should have trouble breaking
and staying over the 1141.50-1142.00 area on the ES.
However, if that area is not reversed on a bounce, but
instead broken and held on a pullback, then a move to test
the January high on the SP500 cash could be in the cards.
March 2010 SP futures resistance
symbols: emini = esh0 / big contract =sph0
1141.50-1142.00
1144.75-1145.25
1147.00-1148.00
March 2010 SP futures support
symbols: emini = esh0 / big contract =sph0
1136.25-1136.00
1133.00-1132.50
1126.50-1126.00
1123.50-1123.00
March 2010 Nasdaq futures resistance
symbols: emini = nqh0 / big contract = ndh0
1903.75-1904.25
1910.00-1911.00
1914.75-1915.50
March 2010 Nasdaq futures support
symbols: emini = nqh0 / big contract = ndh0
1894.00-1893.50
1887.50-1887.00
1882.50-1881.50
1874.50-1873.50
March 2010 Dow futures resistance
symbols: emini = ymh0
10570-10574
10602-10606
10624-10631
March 2010 Dow futures support
symbols: emini = ymh0
10533-10530
10514-10511
10440-10436
10423-10419
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Good Trading,
Mike Reed
TradeStalker.com
Copyright (c) 2010 by TradeStalker.com, Ft Wayne, IN.
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This publication's primary focus is trading the index
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